if govt wanted to stimulate housing, why doesnt it give tax subsidies to the supply side similar to what it does for agriculture industry (e.g. farm subsidies which reduce the price of food) instead of the demand side, artificially inflating the housing prices?
Uh, because artificially inflating real estate prices has never led to any recent financial crisis?
the industry already has…in the form of CASH NOLs…public builders got in aggregate a couple billion in refunds in early 2010 that saved many of the players in the industry for instance, PHM got +800 mln HOV, BZH, KBH…they’d all be gone if it wasnt for that cash injection
Do the cash NOLs translate to lower prices for the homebuyers or is it simply a special interest tax credit that was passed for the benefit of the builders?
ohai Wrote: ------------------------------------------------------- > Uh, because artificially inflating real estate > prices has never led to any recent financial > crisis? reading is fundamental.